Exhibit 16-6 Money, investment and product markets 
In Exhibit 16-6, a move from MS1 to MS2:
A) increases the money supply, causing the interest rate to rise from i2 to i1.
B) increases the money supply, causing the interest rate to fall from i1 to i2.
C) decreases the money supply, causing the interest rate to rise from i2 to i1.
D) decreases the money supply, causing the interest rate to fall from i1 to i2.
E) has no effect on the money supply or the interest rate.
Correct Answer:
Verified
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